Diamonds and Dogs

3/14/13

E*Trade Financial Corporation (ETFC)

E*Trade is trading in the red today, down 8.21% at $10.85. The online brokerage company saw its shares crash after news that one of its largest shareholders was bailing. The hedge fund, Citadel, reveled Wednesday that it was selling off its entire stake in E*Trade. Citadel currently holds a 9.6% stake (27.5 million shares) in the company. The selloff is bad in two ways; first Citadel is selling E*Trade right after the company set a new 52-week high which shows investors that there might not be any more upside. Secondly, Citadel has come to E*Trade's rescue on two occasions, saving the company from near bankruptcy both times. E*Trade is trading in its 52-week range of $7.08-$11.82.

The Men's Wearhouse Inc. (MW)

Men's Wearhouse investors are "going to like the way they look" today, up 19.16% at $34.64. The suit and accessory store saw its shares climb higher after news the company was looking to sell off its K&G unit. Late Wednesday, Men's Wearhouse announced that they hired Jefferies & Co. to evaluate strategic alternatives to help the company and to look at a possible sale for its K&G unit. K&G stores sell men's suits and accessories, with many of the stores also carrying a full selection of women's clothing. K&G is the company's weakest performing unit and a sale would not only cut out the worse performing unit but also bring some cash to the company's balance sheet. Men's Wearhouse is trading in the middle of its 52-week range of $25.97-$40.67.

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